Software Deployment

You might also make certain that the folder specified as containing the cab file is writable. Installing from read-only source, such as a CD or restricted folder has been reported to generate this problem.
If you are installing manually from a CD, try copying the source files to your hard drive and running the setup from there. In most cases, this solution has corrected the problem.
Alternatively, you may try installing in Safe Mode or checking the CD to ensure it is not scratched or dirty.
Another reason worth checking is a CD access restriction policy which may be at fault:
1) Go into your control panel.
2) Open up "Administrative Tools"
3) From here go to "Local Security Policy"
4) Open up "Local Policies" and from there "Security Options"
5) Now in the right hand side box, find the item that reads, "DEVICES: Restrict CD-ROM access to locally logged-on user only"
6) Right click this item, and select properties
7) Change the bullet point from "Enable" to "Disable"
8) Close it all down, restart your PC